Central bank net banking

(VEN) - The money market has been stable since the beginning of the year, with money supply guaranteed and some deposit interest rates on a downward curve. Good liquidity thanks to the return of cash flow to the banking system after Tet After the Lunar New Year (Tet) holiday in February, the liquidity of the banking system was improved, helping the central bank net withdraw more than VND51.55 trillion between February 11 and 15. Good liquidity thanks to the return of cash into the banking system after Tet, has helped interest rates in the interbank market decrease to 4.5 percent per year for overnight loans, 4.64 percent for one-week loans, 4.7 percent for two-week loans, and 4.84 percent for one-month loans. In addition, abundant credit institution capital contributed positively to bidding and capital raising activities through the government bond channel. From February 11 to 15, the State Treasury raised VND10.95 trillion through government bond auctions with … [Read more...] about Bank liquidity up, deposit interest rates expected to stabilize

Credit expansion of state-owned banks was lower than commercial banks’, in which the current lack of capital of the former was a key factor in limiting the credit growth potential of those banks. As the government has set the target for the entire banking sector’s credit growth at 14% in 2019, outstanding loans of Vietnam’s listed banks are likely to slow down compared to the levels in 2018 and 2017, though still at a decent level, according to Viet Dragon Securities Company (VDSC). After a temporary stagnation in the third quarter of 2018, outstanding loans bounced back in the fourth quarter due to additional quota given by the State Bank of Vietnam (SBV), the country's central bank. The credit growth was higher in commercial banks (mostly 17-18% year-on-year). Technological and Commercial Joint Stock Bank (Techcombank) reported the highest credit growth, at 20.3% year-on-year, in spite of very low level in the first half of the year, at 3.6% … [Read more...] about Credit growth of Vietnam’s listed banks projected to slow down in 2019

Many banks have seen their service earnings accelerate, buoyed by increasing investment for the business segment and rising market demands. Financial statements recently released reveal the total net profit from service activities of 14 listed banks with total assets of more than VND100 trillion (US$4.27 billion) last year rose by 21 per cent compared to the previous year to VND24.6 trillion (US$1.05 billion). In the group of large-sized banks, three State-owned banks –Vietcombank, VietinBank and BIDV – led the way in terms of earning profits from services outside credit activities last year. BIDV was the top earner with VND3.550 trillion of net profit, up 20 per cent compared to 2017. The surge helped BIDV take over the top spot from the country’s largest private bank, Techcombank, which experienced a decline in net service profit in 2018 with only VND3.536 trillion. Vietcombank and VietinBank also gained with VND3.401 trillion and VND2.770 trillion, up 34 per cent … [Read more...] about Banks earn huge services profits

Cash flow has returned to the banking system after Tết. - VNA/VNS PhotoViet Nam News HÀ NỘI — Liquidity of the banking system has been plentiful again after the Lunar New Year, helping the central bank net withdraw more than VNĐ51.55 trillion (US$2.2 billion) in the past week. According to a report from the Saigon Securities Inc (SSI), the good liquidity, which was thanks to the return of cash flow to the banking system after Tết, has helped interest rates of loans in the inter-bank market decrease at all terms to 4.52 per cent per year for overnight loans and 4.64 per cent for one-week loans. "The peak period when capital demand was rising sharply a few weeks before Tết has passed, and interest rates in the inter-bank market will likely remain stable at 4-4.75 per cent per year," SSI forecast. According to the SSI report, deposit interest rates listed at commercial banks are also relatively stable, with a slight rise of 0.1-0.2 percentage … [Read more...] about Bank liquidity abundant after Tết

The central bank net injected more than VNĐ47.5 trillion (US$2 billion) into the open market operation. — Photo ABBankViet Nam News HÀ NỘI — The State Bank of Việt Nam (SBV) net injected more than VNĐ47.5 trillion (US$2 billion) into the open market operation (OMO) last week to support the liquidity of the banking system amid rising capital demands at the end of the year. According to the latest report from the Saigon Securities Company, the injection was foreseeable as the SBV also pumped a large amount of money to support the liquidity of commercial banks at the end of 2016 and 2017, when the demand for cash increased sharply in the weeks ahead of Tết (Lunar New Year) - the country’s biggest holiday. The SBV’s decision to continuously buy a large amount of US dollars in the past week also supported the supply of Vietnamese đồng. The good liquidity helped overnight interest rate of đồng loans in … [Read more...] about Central bank net injected $2b to meet high capital demand at year-end

The State Bank of Việt Nam net withdrew over US$581.2 million last week. - Photo cafef.vnViet Nam News HÀ NỘI — Liquidity in the banking system has improved in the past week, pushing the State Bank of Việt Nam to make a net withdrawal of over VNĐ13.6 trillion (US$581.2 million). According to the latest monetary report by Bảo Việt Securities Company, the central bank issued bills worth VNĐ25.62 trillion last week. The improved liquidity has also helped the interest rates of Vietnamese đồng loans in the inter-bank market decline for the past three consecutive weeks. Accordingly, the rate for overnight đồng loans in the inter-bank market last week slid 0.31 percentage points against the previous week to 2.3 per cent per year. The rates for one-week and two-week loans also declined by 0.26 and 0.21 percentage points to 2.54 and 2.86 per cent, respectively. Banks currently list the lending rate for individual and … [Read more...] about Central bank net withdraws over $581m amid improved liquidity

Viet Nam News HÀ NỘI — The banking sector is optimistic about its growth prospect in 2018 as all of surveyed banks expects the growth rate to be more than 10 per cent. This was revealed by Việt Nam Report on Wednesday in its announcement of the top 10 prestigious commercial banks in Việt Nam in 2018. Many banks in its survey last month planned positive profits in their shareholders’ meeting. Some even expected a growth rate of 40-65 per cent. In 2017 and the first half of 2018, the banking sector witnessed strong and stable progress, focusing on restructuring. The management policies of State Bank of Việt Nam (SBV) achieved some success. The central bank absorbed quite a lot of foreign currency, thus increasing foreign reserves, controlling inflation, stabilising foreign exchange rate and ensuring payment balance surplus. In 2017-18 period, banks made headlines for their internal restructuring as well as for their market image, human … [Read more...] about Banks optimistic about growth rate this year

The National Financial Supervisory Committee (NSFC) estimates that real estate-related credit makes up over 20 per cent of banks’ total outstanding loans. — Photo tinnhanhchungkhoan.vn Small lenders find it difficult to reduce cross-ownership in other banks The State Bank of Viet Nam has sought the Government’s permission to allow credit institutions more time to sell their stakes in other lenders since many smaller ones are struggling to do so. Through a circular in 2015 it had set a February 2016 deadline for lenders to bring their ownership thresholds within the limits prescribed by the Law on Credit Institutions. It wants to extend this to June 30, 2019. The law allows individuals to own up to 5 per cent of the charter capital of a bank and institutions to own 15 per cent except in cases of distressed or equitised banks and ownership by a strategic foreign investor. The extension of the deadline is aimed at helping small banks, who have reportedly had problems … [Read more...] about SBV tries to extend divestment deadline for small banks

Some weak banks that are undergoing restructuring might get out of the worse thanks to unprecedented support measures under a new law. Hanoi (VNA) - Some weak banks that are undergoing restructuring might get out of the worse thanks to unprecedented support measures under a new law, experts have said. The revised Law on Credit Institutions, which has taken effect since January 15 this year, includes many regulations to help weak banks rebound and resume healthy performance with support from the State Bank of Vietnam (SBV) and other strong credit institutions that are entrusted to support the weak ones. According to experts, weak banks need to have good liquidity to resolve their problems, however, it is not easy, especially when their brands are negatively affected due to being put under the special supervision of the central bank. Without liquidity, their accumulated losses will become more serious as they have to continue paying deposit interest rates to have the capital … [Read more...] about New law set to help weak banks recover: experts

M&A deals seen more active in banking sectorThanh Thuong and Hong Phuc By Thanh Thuong and Hong Phuc - The Saigon Times Daily HCMC – The banking sector looks set to have more mergers & acquisitions (M&A) deals struck this year as numerous banks are putting forth their merger schemes in the ongoing annual general meeting (AGM) season. Vietcombank will seek approval to carry out an M&A agreement with other banks at its AGM slated for April 23. However, the bank has not disclosed the names of any candidates, Viet Capital Securities Company (VCSC) said in a report released last Friday. PGBank has also released documents for its AGM scheduled for April 18, which include a proposal to merge into VietinBank. This M&A will take place through a share swap at the ratio of at least one PGBank share for 0.82 VietinBank share, which translates to a maximum price for PGBank at VND13,612 per share. PGBank is an unlisted private bank with assets totaling VND19.2 trillion … [Read more...] about M&A deals seen more active in banking sector